Sri Lanka’s external sector showed signs of revival with a significantly improved trade balance and continuous inflows to the government securities market in June 2017. A substantial growth in industrial and agricultural exports and a decline in importation of consumer and intermediate goods resulted in a notable improvement in the trade balance in June 2017. Inflows to the financial account were characterised by steady inflows to the government securities market while foreign investment in the Colombo Stock Exchange (CSE) also remained positive during the month. Other major receipts to the current account remained moderate with the decline in workers’ remittances while tourist earnings recorded a modest growth. The positive developments in the financial account and gradual increase in export proceeds stabilized the foreign exchange market and resulted in an increase in gross official reserves by end June 2017 compared to the beginning of the year.
Friday, August 25, 2017